We appreciate your visit to Economic profits are A Total revenue minus total cost B Total cost minus total revenue C Marginal revenue minus total cost D Total revenue minus. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Economic profits are defined as total revenue minus total cost.
Revenue is the total amount of money earned by a company from its sales. Profit is the share of money that remains after deducting the company's operational costs, debts, taxes, and any other expenses incurred in the pursuit of revenue.
Hence, we can calculate profit as:
Profit = revenues - total cost
Profitability may be increased in four major areas. These include cost reduction, increased turnover, increased productivity, and increased efficiency.
We can also enter new market segments or create new products or services.
Close cost management can drive your profitability. Most organizations may find ways to reduce waste; nevertheless, it is critical not to save costs at the price of the quality of your products and services.
Learn more about profit here:
https://brainly.com/question/1078746
#SPJ4
Thanks for taking the time to read Economic profits are A Total revenue minus total cost B Total cost minus total revenue C Marginal revenue minus total cost D Total revenue minus. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
Final answer:
Economic profits are determined by subtracting both explicit and implicit costs from total revenue. This differs from accounting profit, which deducts only explicit costs.
Explanation:
Economic profits are calculated by subtracting both explicit and implicit costs from total revenues. This means that the correct answer to the student's question is that economic profits are total revenue minus total cost, which includes both explicit and implicit costs. It is important to distinguish between economic profit and accounting profit; the former considers both explicit and implicit costs, while the latter only deducts explicit costs from total revenue.
